Rust Belt: A Microcosm Illustrating Political And Economic Landscape Of The USA – Analysis

The term “Rust Belt” is an infamous nickname for the traditionally industrial region in the Midwest, the Great Lakes area, and the northeastern United States. This geographical region of America, which was once, from the late 19th to the mid-20th century, the center and pride of American industry and manufacturing, experienced a significant economic decline in the second half of the 20th century due to deindustrialization and globalization.

The Rust Belt encompasses parts of the USA that were industrial hubs but have gradually become synonymous with economic stagnation, poverty, and crime. In the 21st century, the region serves as a microcosm of the USA, reflecting the most significant economic and political challenges facing contemporary America.

Geographical Scope and the Term

The geographical scope of the region varies depending on the author, but most agree that it includes urban parts of the American states of Ohio (Cleveland, Akron, Youngstown, Toledo, Dayton), Michigan (Detroit, Flint, Lansing, Grand Rapids), Pennsylvania (Pittsburgh, Erie, Scranton, Allentown, Bethlehem), Wisconsin (Milwaukee, Racine, Kenosha), Indiana (Gary, South Bend, Fort Wayne), Illinois (Chicago, Peoria, Rockford), New York (Buffalo, Rochester, Syracuse), New Jersey (Newark, Paterson, Camden), West Virginia (Wheeling, Huntington, Weirton), Missouri (St. Louis, Kansas City), Minnesota (Duluth), Iowa (Davenport, Waterloo), and Kentucky (Louisville).

By the 1970s, America’s industrial center had fallen into a crisis that became evident to all. The prototype of the term Rust Belt was first used by Democratic presidential candidate Walter Mondale during the 1984 election campaign while addressing workers in Cleveland. Responding to the optimistic rhetoric of Republican President Ronald Reagan, Mondale alluded to the well-known desolation of the Great Depression era known as the “Dust Bowl” and claimed that Reagan’s policies were “turning our industrial Midwest into a Rust Bowl.” The word “rust” aptly described the abandoned and dilapidated factories that were becoming a new hallmark of the region. Journalists replaced the word “bowl” with “belt,” which is popular in American political discourse (Bible Belt, Corn Belt, Sun Belt), giving rise to the recognizable term.

Historical Context

If American policymakers had pursued even a slightly thoughtful economic and foreign policy in the past century, the American Northeast and Midwest would never have received such a clever but derogatory name. However, sometimes historical processes take unexpected directions. Before the region became known as the Rust Belt, it was long called the Steel Belt to emphasize its economic importance. The Midwest and Northeast of the USA were industrial centers of equal importance to the Ruhr region for Germany, Donbas for Ukraine, South Wales, and North England for Great Britain. The region could industrially develop for two main reasons: an abundance of resources and a good transportation network. The area was rich in valuable natural resources such as coal, iron ore, and oil. The development of the steel industry was enabled by abundant resource supplies and the availability of the Great Lakes and inland waterways like the Ohio River and the Erie Canal, which connected the Atlantic Ocean and the Great Lakes by linking the Hudson River and Lake Erie.

The Erie Canal was completed in 1825. It accelerated the expansion of the USA westward, spurred the settlement of the Midwest, and made New York the largest American port. The network of American railroads began to be built in the 1830s and was completed after the end of the Civil War in 1875. Good access to a transportation network of rivers, canals, and railways, as well as the strategic position in the Midwest, facilitated the industrial development of the area. During the Gilded Age, from the late 1870s to the late 1890s, millions of European immigrants arrived, settling in cities along the shores of the Great Lakes. Chicago was a neglected rural town in the mid-19th century, and by the end of the century, it was one of the fastest-growing American cities with 1.7 million residents. During the late 19th century, numerous steel mills, chemical factories, and automobile manufacturing plants were established. Detroit, for example, became known as “Motor City” due to the dominance of the automotive industry led by companies like Ford, General Motors and Chrysler.

Rise

The golden age of industrialization in the Rust Belt lasted from the early to mid-20th century. During this time, the region experienced incredible economic growth and prosperity. Factory jobs were well-paid, allowing working-class families to achieve middle-class status. Cities flourished, and infrastructure developed to support industrial growth. Buses, trams, and cars became common sights on the streets. Industrial workers were often union members, which allowed them better working conditions and wages.

Organizations like the United Auto Workers (UAW) and United Steelworkers (USW) had a significant impact on negotiations with employers and improving working conditions. During World War I and World War II, production in the region significantly increased to support the war efforts. Factories were repurposed to produce weapons, vehicles, and other military equipment. Local companies became important at the national level. Industries, especially the automotive, coal, and steel sectors, employed a large portion of the population. After 1945, the return of soldiers and increased consumer spending spurred further economic growth. It was an era of prosperity.

Decline

Historians consider the Steel Belt to have transformed into the Rust Belt in the 1970s and 1980s; however, the first signs of future troubles began to appear as early as the 1950s. It could be said that America fell into trouble because it enjoyed the dangerous comfort zone of complacency. The American industry was powerful, but American industrialists did not realize that it needed modernization in equipment, machinery, and infrastructure to keep up with the competition. The automotive industry, though still strong, faced competition from Europe and Japan, the steel industry faced new challenges due to changes in the global economy, and many workers in the region moved from cities to suburbs. In short, the main reasons for economic stagnation were the emergence of cheap labor in Asia, the industrial advancements in Europe and Asia, an overly strong dollar that made American products too expensive on the world market, and the emergence of globalization and offshoring.

In the 1970s, the USA opened up to international trade. As foreign imports from China and Japan began to flood the market, the American manufacturing industry as a whole found itself in an unenviable position. The situation was worst in the Rust Belt because outdated factories and machinery could not keep pace with the more efficient processes brought about by advanced technology developed in Asia.

Due to the competition from cheap labor in developing countries, particularly China, wages in the Midwest first began to decline before jobs were finally eliminated as American employers saw their profits dwindling. American businessmen moved factories to the southern parts of the USA (a rarer case), or they transferred them to countries with cheap labor, such as China, Vietnam, India, and Mexico (offshoring). The processes of deindustrialization in America coincided with the reorientation of the American economy from industry to service activities. Technological advancement and automation further reduced the need for labor in the industrial sector. During the 1980s, the USA had a negative trade balance with China, Japan, South Korea, and Taiwan, but by then, it was too late to change the trends.

Consequences of Economic Stagnation

The term Rust Belt became ubiquitous because the failed factories turned into abandoned facilities that rusted and became urban eyesores, and the economy of the entire region “rusted.” The consequences were dire. Between 1950 and 1980, the region lost 28% of its total number of jobs. In the same period, the loss of manufacturing jobs was a staggering 34%. Unemployment was rampant, and growing poverty led to the mass exodus of a large number of residents. Workers fled en masse in search of better opportunities in other parts of the USA.

Cleveland (whose population dropped from 876,000 in 1960 to 505,000 in 1990) was mocked as the “Mistake on the Lake.” The exodus resulted in a reduction in tax revenue for cities, which further made it difficult to maintain public services and infrastructure. Economic decline and social insecurity contributed to the rise of crime and other social problems. Increased crime rates, drug abuse, and domestic violence became common problems in many urban areas.

Political Views of the Region

History repeatedly shows that political parties that show concern for workers receive the votes of the Rust Belt electorate. In the period after the outbreak of the Great Depression in 1929, the Democratic administration, led by President Franklin Roosevelt, demonstrated great concern for industrial workers through the development program of the New Deal. Roosevelt granted significant powers and rights to unions, allowing them to negotiate wages and other work conditions with employers. This paid off politically. According to a 1940 survey conducted in Erie County, within the industrial district of Erie, Ohio, the majority of voters believed that Roosevelt represented “ordinary people,” and they regularly voted for him. Democrats recorded excellent election results in the region.

However, the 1960s and 1970s were years of significant change in America. Economic growth stalled, and the agenda of the two leading political parties changed. Democrats became liberals who supported the rights of minorities (women, Black, and other minority communities), the sexual revolution (feminism and the LGBT agenda), and more radical leftist economic policies, while Republicans became conservatives who sought to protect the rights of whites, a patriarchal way of life, and religion. Democrats, along with Republicans, embraced globalization and the deindustrialization of America in the 1970s. But it was the Republicans, particularly Donald Trump, who first advocated a turnaround and the return of jobs to America. In line with all these political changes, the abandoned workers (mainly white) within the Rust Belt profoundly changed their political views. It was shown that white working-class districts, which regularly voted for Democrats in the mid-20th century (about 80%), voted minimally for the Democratic candidate Hillary Clinton (4%) in the 2016 election, while 96% voted for the Republican Trump.

The Enormous Political Value of the Region

The political value of the region is invaluable. The Rust Belt stretches across important swing states that are battleground or swing states that can vote for either the Democratic or Republican candidate in presidential elections. The most valuable swing states that belong to the Rust Belt are Wisconsin (10 electoral votes), Michigan (15 electoral votes), and Pennsylvania (19 electoral votes), to which Ohio (17 electoral votes) should be added. Trump won all four in 2016, defeating Clinton, while in the 2020 election, he suffered a narrow defeat to Joe Biden in all but Ohio.

According to recent estimates by influential Democratic Party strategist Julian Epstein, voters in the Rust Belt lean more toward Donald Trump than Kamala Harris. Other studies conducted by “The New York Times,” “The Hill,” and the polling center “RealClearPolitics” showed similar trends. A “RealClear Politics” survey showed Trump leading in the Rust Belt by 1.7%, a “The New York Times” poll gave Trump a 2% lead, and “The Hill” found a 2.1% lead for Trump. Although these are small advantages, every vote in swing states like Pennsylvania, Wisconsin, and Michigan is crucial because whoever wins gets all the electoral votes of that state.

Harris is supported by voters who belong to minority communities, as well as women. She is also supported by the younger population under 35. Voters in the 35 to 54 age group equally support Trump and Harris. Voters over 55 mostly support Trump. It appears that voters (especially workers in the industry) believe that Trump, as a businessman, is best suited to address issues related to the economy and the creation of new and the return of old jobs. Polls show that Trump’s biggest burden is his vice-presidential candidate, Ohio Senator J.D. Vance, who is extremely unpopular among voters. Vance himself comes from an area that belongs to the Rust Belt. He experienced all the negative consequences of that area, such as the socio-economic crisis, firsthand in his youth.

Economic Recovery on the Horizon?

According to some observers, the best years of the Rust Belt are long over and will never return, while others believe it’s time for the region to rebrand itself and become a center of innovation and a wide range of new jobs. In any case, in the 21st century, the region is struggling to regain its former glory. Many cities have undertaken efforts to revitalize and rebuild the economy. Local governments, non-governmental organizations, and the private sector have joined forces to find solutions to economic and social problems. Revitalization initiatives include the development of new industries, improvement of infrastructure, investments in education, and promotion of entrepreneurship and innovation. A key prerequisite for the revitalization of the declining region is the diversification of the economy, the introduction of green technologies, and investment in medicine and fields such as bio and nanotechnology.

Some cities are doing better, while others are doing worse. In recent years, the state of Ohio has announced several new projects that will create several thousand new jobs. In 2021, more than $2.1 billion in new investments were secured. Two years ago, Intel announced it would invest more than $20 billion to build two new factories and establish a new center for advanced chip manufacturing in Ohio. In Columbus, also in Ohio, the state university has played a key role in the city’s economic recovery, attracting students and researchers and encouraging technological innovation. Indianapolis has become a hub for the healthcare industry, with major pharmaceutical companies contributing to economic recovery. Cities like Detroit and Pittsburgh are investing in the tech sector, creating entrepreneurial hubs for startups and tech companies. These are indicators that the region can once again become an industrial driver of America by encouraging the development of high-tech industries.

There are also plenty of negative examples. In 2013, Detroit became the largest American city to declare bankruptcy, which further worsened financial problems and made it difficult to rebuild infrastructure and public services. The city still faces high unemployment rates (10.7%) and poverty (33.8%). Youngstown in Ohio is also hit by high poverty rates (34.4%) and unemployment (7.1%), as well as a lack of investment. A similar situation is with Flint in Michigan, which also faced a water crisis. Overall, a lot of work remains to make the region an economic driver of America again. Whichever presidential candidate presents a clear vision of economic recovery and wins the votes of the Rust Belt electorate will very likely become the new American president.